High School

Assuming a 100,000 par value, calculate the dollar price for the following Treasury coupon securities given the quoted price: 103.284.
A) 100,000
B) 103,284
C) 103,280
D) 103,284.00

Answer :

Final answer:

The dollar price of a treasury coupon security with a par value of 100,000 and a quoted price of 103.284 is calculated as 100,000 * (103.284 / 100), which equals 103,284.00. So, the correct option is D) 103,284.00.

Explanation:

To calculate the dollar price of a treasury coupon security with a quoted price, you multiply the par value by the quoted price, expressed as a percentage. So, with a par value of 100,000 and a quoted price of 103.284, you would perform the following calculation:

Dollar price = Par value × (Quoted price / 100)

Dollar price = 100,000 × (103.284 / 100)

Dollar price = 100,000 × 1.03284

Dollar price = 103,284.00

The correct answer to the student's question is 103,284.00, which represents the total dollar price of the security.